Pay-Per-Sustainable-Use: A Case of Product Service System Innovation

Abstract

Shifting to product-service systems (PSS) enables pay-per-use revenue models to positively impact social, economic, and environmental interests. However, few studies have shown how user-oriented PSS offers can be adopted in traditional sectors of the economy. This paper introduces the concept of “pay-per-sustainable-use” in construction: PSS adoption that promotes conscientious equipment use and long-term value for its stakeholders. A design science research project was conducted in a supplier of construction tower cranes aiming to redesign their product portfolio. This project shows how information systems can modernize business models toward smarter machinery for sustainable construction. For theory, we characterize the pay-per-sustainable-use revenue model using PSS. For practice, we present a pioneer case of PSS design in construction tower cranes and suggest accessible guidelines to assist construction equipment managers in selecting the best digital transformation strategy that protects people, machines, and the building environment.